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Naval Petroleum Reserve: Limited Opportunities Exist to Increase Revenues from Oil Sales in California
Keith O. Fultz (au)
The govít.-owned and operated Naval Petroleum Reserve (NPR) in Elk Hills, CA -- in 1994 the 7th largest oil field in the lower 48 states -- generated oil sales revenues of $327 million on 41,000 barrels per day in 1992. The DoE sells most of this oil to Calif. refiners through competitive bids. The prices received by the govít. for this oil have been lower than prices for crude oil in other regions of the country. Could the govít. increase its revenues from the sale of NPR oil? This report examines whether: selling NPR oil to Gulf Coast and mid-continent refiners could enhance revenues and result in higher prices for the remaining NPR oil sold in Calif.; and significant barriers impede shipping NPR oil to those refiners. Charts and tables.
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